Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Skilte Company is required by law to collect and remit sales taxes to the state. If Skillen has $8,000 of cash sales that are subject

image text in transcribed
Skilte Company is required by law to collect and remit sales taxes to the state. If Skillen has $8,000 of cash sales that are subject to an 8% sales tax, what is the journal entry to record the cash sales? Debit Cash $8,640; credit Sales $8,000; credit Sales Taxes Payable 5640. Debit Cash $8,000: credit Sales $8.000; and record the taxes when paid Debit Accounts Receivable $8.640 credit Sales $8.000; credit Sales Taxes Payable $640. Debit Sales Taxes Payable $640: debit Cash $7,360, credit Sales 18.000 Debit Cash $8,000; credit Sales 57,360; credit Sales Taxes Payable $640

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Accounting

Authors: Needles, Powers, crosson

11th Edition

1439037744, 978-1133626985, 978-1439037744

More Books

Students also viewed these Accounting questions

Question

What type of postprocessing is required for SIB processes?

Answered: 1 week ago